South Korea is already a leading nation when it comes to crypto and blockchain adoption, but this is not enough for them. The city of Busan has been given the approval to be designated as a
“regulation-free blockchain zone.”
On 23rd July, the ministry of small and medium-sized businesses announced that 7 branches nationwide including Busan (blockchain), Sejong (autonomous driving) and Gangwon (digital health care) have designated 58 local regulators as special free zones. Busan will utilize the blockchain to be used in digital local currency, tourism, and aquatic history management. The part where the special regulation is implemented is the Personal Information Protection Act.
South Korea’s President Moon Jae-In stated:
“While regulatory innovation in the era of industrialization was a matter of choice, it is now a question of survival as we are experiencing the fourth industrial revolution, characterized by fusions across industries and fields.”
He added that building real use cases for blockchain to guard personal data add to a greater international carriage for South Korea, while blockchain utilization in finance will considerably add to the revitalization of the local economy.
Busan is reportedly developing a crypto project in the form of stablecoin, a cryptocurrency pegged 1:1 to the local currency in the BNK Busan bank account. By issuing a local digital currency, Busan expects to revive the local economy, as well as to secure the leading position in blockchain, the report notes.
In Feb 2019, Busan signed a Memorandum of Understanding (MoU) with blockchain company Hyundai Pay with the purpose of promoting blockchain industry through
“contribution to the development of local ICT industry through mutual growth with related start-up businesses.”
However, the government can eliminate these projects in the event of predicaments. Precisely, the deregulation implemented to the zones can be restricted when solicitudes appear over people’s lives and safety and environments and the specification can be withdrawn in the event of any problem.